TaxTMI 
TaxTMI 
2016 (4) TMI 633
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....n made by the AO on account of entertainment expenses from Rs. 8,01,890/- to Rs. 1,60,378/- though the assessee failed to prove the genuineness and failed to furnish necessary documentary evidence for incurring the above expenses. 2. In the facts and circumstances of the case the Ld. CIT(A) grossly erred in restriction the addition made by the AO on account of travelling expenses from Rs. 42,22,162/- to Rs. 8,44,432/- though the assessee could not prove the genuineness of incurring the above expenditure and not furnished necessary documentary evidence for incurring the above expenses. 3. In the facts and circumstances of the case the Ld. CIT(A) grossly erred in restriction the addition made by the AO on account of travelli....
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....ofessional receipts from the said firms. 7. That the grounds of appeal are without prejudice to each other. 8. The appellant craves leave to add, amend or modify any/all the ground of appeal before or during the course of the appeal." 3. Vide Ground No. 1, the grievance of the department relates to the relief allowed by the ld. CIT(A) out of the disallowance made by the AO on account of entertainment expenses. 4. Facts related to this issue in brief are that the assessee filed the return of income on 29.09.2009 declaring an income of Rs. 79,95,910/- which was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) on 28.02.2011. Later on, the case was selected for scrutiny. The AO accept....
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....ring the submissions of the assessee observed that the assessee had produced some bills and the statement of credit cards evidencing the payment made towards expenditure. He further observed that for carrying on the profession, the expenditure relating to entertainment needed to be made and that the allowability of the expenditure could not be questioned on the basis that all the bills were not produced during the course of assessment proceedings. The ld. CIT(A) was of the view that reasonableness of the expenditure has to be judged with reference to the nature of business. He further observed that the expenses were incurred having regard to the commercial expediency and those need not necessarily have their origin in contractual obligation....
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....ted the disallowance to the extent of 20% of the travelling expenses also and sustained the disallowance of Rs. 8,44,432/-. 9. Now the department is in appeal. The ld. DR reiterated the observations made by the AO in the assessment order dated 30.12.2011 while the ld. Counsel for the assessee strongly supported the impugned order of the ld. CIT(A) and reiterated the submissions made before the authorities below. 10. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is noticed that the assessee had been associated with two firms i.e. M/s AZB & Partners and M/s Ajay Bahl & Co. to render consultancy services and advice on the matters relating to....